The investors of Canadian Oil Sands (COS) Ltd have managed to snag another month while they try to seek out a counter offer to the one made by Suncor Energy.
Suncor Energy Inc. made a bid earlier this year of $4.5b for the company which it has refused to increase despite pressure to do so.
In what’s been referred to as a ‘hostile takeover,’ COS have vowed to protect their shareholders and don’t want to accept Suncor’s offer which would see shares valued at 0.25 each. The company has been holding out for a better offer and had until December 4 to make a decision.
However, the Alberta Securities Commission has given the shareholders an extra month to consider the offer, their options and find another bidder. It is thought that COS found Suncor’s offer too low and they want to find an alternative option.
The acquisition would help Suncor, the Calgary-based energy company, better its status as Canada’s largest crude producer but COS continues to urge shareholders not to accept the bid.
Suncor also specializes in production of synthetic crude from oil sands. It wants to increase its stake in the Syncrude bitumen mine, whose largest owner is currently Canadian Oil Sands holding 36.74%.
However, while time goes on Suncor may well retract their current bid after failing to hurry the decision along.
In the meantime, Canadian oil sands has said to have several parties interested in the purchase and it’s hoped that, come the new year, they’ll have received a new offer more beneficial to shareholders.